3. Forecast of consolidated operating results for the year ending
March 31, 2014 (from April 1, 2013 to March 31, 2014)

Year ending

March 31, 2014

Net income attributable to Mitsui & Co., Ltd.

Millions of yen

370,000

Net income attributable to Mitsui & Co., Ltd. per share, basic

Yen

202.74

4. Others

(1) Increase/decrease of important subsidiaries during the period :
Yes

New : 1 company (MMRD Gama Limitada)

Decrease : 1 company (Mitsui & Co. Europe Holdings PLC)

(2) Number of shares :

March 31, 2013

March 31, 2012

Number of shares of common stock issued, including treasury stock

1,829,153,527

1,829,153,527

Number of shares of treasury stock

4,027,206

4,204,441

Year ended March 31, 2013

Year ended March 31, 2012

Average number of shares of common stock outstanding

1,825,019,130

1,824,888,914

Disclosure Regarding Annual Audit Procedures:

As of the date of disclosure of this annual earnings release, an
audit of the annual financial statements is being carried out in
accordance with the Financial Instruments and Exchange Act.

A Cautionary Note on Forward-Looking Statements:

This report contains forward-looking statements including those
concerning future performance of Mitsui & Co., Ltd. (“Mitsui”), and
these statements are based on Mitsui’s current assumptions,
expectations and beliefs in light of the information currently
possessed by it. Various factors may cause Mitsui’s actual results
to be materially different from any future performance expressed or
implied by these forward-looking statements. Therefore, these
statements do not constitute a guarantee by Mitsui that such future
performance will be realized.

For key assumptions on which the statements concerning future
performance are based, please refer to (2) “Business Plan for the
Year Ending March 31, 2014” on p. 21. For cautionary notes with
respect to forward-looking statements, please refer to the
“Notice” section on p. 26.

Supplementary materials and IR meeting on financial results:

Supplementary materials on financial results can be found on our web
site.

We will hold an IR meeting on financial results for analysts and
institutional investors on May 8, 2013.

Contents of the meeting (English and Japanese) will be posted on our
web site immediately after the meeting.

Table of Contents

1. Qualitative Information

(1) Operating Environment

(2) Results of Operations

(3) Financial Condition and Cash Flows

2. Management Policies

(1) Progress with the Medium-term Management Plan to March 31, 2014

(2) Business Plan for the Year Ending March 31, 2014

(3) Shareholder Return Policy

3. Other Information

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(2) Statements of Consolidated Income and Comprehensive Income

(3) Statements of Changes in Consolidated Equity

(4) Statements of Consolidated Cash Flows

(5) Assumption for Going Concern

(6) Basis of Consolidated Financial Statements

(7) Notes to Consolidated Financial Statements

1. Qualitative Information

As of the date of disclosure of this earnings report, the audit
procedures for consolidated financial statements have not been completed.

(1) Operating Environment

During the first half of this fiscal year, the slowdown in the advanced
economies such as the financial crisis in Europe had spillover effects
to the emerging economies, raising concerns over a further slowdown in
the global economy. However, with the monetary easing and stimulus
packages in place, the global economy regained signs of modest
improvement in the second half of the fiscal year.

Although negative economic growth is still anticipated in the euro area,
measures against the crisis such as the implementation of the bond
purchase program have shown some progress. In the United States, with
the implementation of Quantitative Easing 3, backed by solid job growth,
improvement in the real estate market as well as rising in stock prices,
consumer spending showed a robust performance. In Japan, as a result of
the significant monetary easing and fiscal action, rapid depreciation of
the yen as well as rising stock prices are being observed, leading to an
expectation that corporate performance and the economic climate will
start to pick up. As a next step, early implementation of a growth
strategy that would realize sustainable economic growth is awaited.

In China, a temporary slowdown in the economy was seen, due to a decline
in export volumes to the euro area and sluggish real estate investment.
However, the Chinese economy has bottomed out supported by the monetary
policy easing and stimulus package on consumption in place, along with
investments related to infrastructure development, and we expect a
steady 7.5-8% per annum growth.

The commodities markets, including crude oil and metal resources, showed
a large drop affected by the financial crisis in Europe, presenting
severe challenges to our operations. Recently, the commodities markets
are regaining stability along with the normalization of the
international financial market, but as the world economy lacks a strong
driving force like China after the Lehman Shock, recovery is yet limited
to certain commodities and we remain cautious of the high levels of
volatility.

While we maintain our view that the global economy will continue to grow
at a moderate rate driven by reasonable growth in the emerging economies
and the moderate recovery in Japan and the U.S., we expect that such
growth will remain sluggish and the global economy vulnerable. We will
further intensify our monitoring of the commodities markets as well as
the changes in economic policies, and, with a long term perspective,
reinforce our disciplined approach in conducting our businesses.

(2) Results of Operations

1) Analysis of Consolidated Income Statements

Revenues

Mitsui & Co., Ltd. (“Mitsui”) and its subsidiaries (collectively “we”)
recorded total revenues of ¥4,911.6 billion for the year ended March 31,
2013, a decline of ¥340.0 billion from ¥5,251.6 billion for the
corresponding previous year.

Revenues from sales of products for the year ended March 31, 2013 were
¥4,408.1 billion, a decline of ¥345.1 billion from ¥4,753.2 billion for
the corresponding previous year, as a result of the following:

The Energy Segment reported a decline of ¥320.7 billion. Petroleum
trading activities recorded a decline of ¥351.0 billion due to the
decline in trading volume at Westport Petroleum, Inc. (United States),
while an increase of ¥47.2 billion was recorded in oil and gas
producing activities due to increases in both volume and oil prices.

The Machinery & Infrastructure Segment reported an increase of ¥30.4
billion due to a solid performance in motor vehicle-related as well as
mining and construction machinery-related businesses.

The Chemicals Segment reported a decline of ¥44.1 billion mainly due
to underperforming trading activities in petrochemical intermediate
materials as well as fertilizer resources and materials.

Revenues from sales of services for the year ended March 31, 2013 were
¥392.1 billion, an increase of ¥15.1 billion from ¥377.0 billion for the
corresponding previous year.

Revenues from other sales for the year ended March 31, 2013 were ¥111.4
billion, a decrease of ¥10.0 billion from ¥121.4 billion for the
corresponding previous year. Mitsui recorded losses and gains in
revenues related to the commodity derivatives trading business, which
correspond to foreign exchange gains of ¥6.4 billion and ¥5.8 billion
posted in other expense-net for the year ended March 31, 2013 and 2012,
respectively.

Gross Profit

Gross profit for the year ended March 31, 2013 was ¥790.4 billion, a
decline of ¥87.9 billion from ¥878.3 billion for the corresponding
previous year as a result of the following:

The Mineral & Metal Resources Segment reported a decline of ¥36.1
billion in gross profit. Iron ore mining operations in Australia
reported a decline of ¥37.2 billion reflecting the decline in iron ore
prices, which was partially offset by the positive effect of increases
in sales volume led by both the effect of incremental capacity and the
reversal effect of unseasonably wet weather for the corresponding
previous year.

The Energy Segment reported a decline of ¥28.4 billion in gross
profit. Mitsui Coal Holdings Pty. Ltd. (Australia) reported a decline
of ¥32.4 billion and Mitsui E&P USA LLC (United States) reported a
decline of ¥11.6 billion due to an increase in depreciation costs as
well as a decline in gas prices in the U.S. Meanwhile, Mitsui Oil
Exploration Co., Ltd. (Japan) reported an increase of ¥22.2 billion
due to increases in both volume and oil prices; and Mitsui E&P Texas
LP (United States) recorded an increase of ¥6.7 billion.

The Americas Segment reported a decline of ¥9.6 billion in gross
profit. Novus International, Inc. (United States) reported a decline
of ¥6.7 billion due to a decline in sales price of methionine, as well
as a write-down on inventories of feed additives other than methionine.

The Lifestyle Segment reported a decline of ¥6.0 billion in gross
profit, due to a decline in trading business of grain reflecting lower
prices.

The Machinery & Infrastructure Segment reported an increase of ¥10.3
billion in gross profit. The main cause of the increase was the
reversal effect of a loss allowance for vessels under construction
recorded in the corresponding previous year and solid performance of
mining and construction machinery-related businesses.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the year ended March
31, 2013 were ¥521.1 billion, an increase of ¥6.3 billion from ¥514.8
billion for the corresponding previous year. The table below provides a
breakdown of selling, general and administrative expenses used for our
internal review.

[Table omitted]

The table below provides selling, general and administrative expenses
broken down by operating segment.

Effective April 1, 2012, we changed our reportable operating segments.
Starting from the year ended March 31, 2013, the headquarters’ cost
allocation system was changed from partial allocation to full allocation
to the operating segments. For more information, see 2) Operating
Results by Operating Segment.

[Table omitted]

Provision for Doubtful Receivables

Provision for doubtful receivables for the year ended March 31, 2013 was
¥14.8 billion, a decline of ¥0.3 billion from ¥15.1 billion for the
corresponding previous year. The provisions for both periods represented
aggregated reserves for individually small receivables.

Interest Income (Expense)—Net

Interest income, net of interest expense, for the year ended March 31,
2013 was ¥1.2 billion, an improvement of ¥4.2 billion from ¥5.4 billion
of expense for the corresponding previous year. Income increased by ¥4.5
billion mainly attributable to the deferred commitment fee related to
the loan extended to the subsidiary of Corporación Nacional del Cobre de
Chile ("Codelco") recorded for the year ended March 31, 2013. The
following table provides the periodic average of 3 month Tibor for the
Japanese yen and 3 month Libor for the U.S. dollar for the years ended
March 31, 2013 and 2012.

Periodic average of 3 month rate (%p.a.)

Year ended March 31,

2012

2013

Japanese yen

0.34

0.31

U.S. dollar

0.40

0.37

Dividend Income

Dividend income for the year ended March 31, 2013 was ¥80.1 billion, a
decline of ¥6.4 billion from ¥86.5 billion for the corresponding
previous year. Dividends from six LNG projects (Abu Dhabi, Oman,
Qatargas 1 and 3, Equatorial Guinea and Sakhalin II) were ¥61.2 billion
in total, a decline of ¥7.4 billion from ¥68.6 billion for the
corresponding previous year, reflecting a decline in dividends received
from the Sakhalin II project.

Gain on Sales of Securities—Net

Gain on sales of securities for the year ended March 31, 2013 was ¥44.9
billion, an increase of ¥23.0 billion from ¥21.9 billion for the
corresponding previous year.

For the year ended March 31, 2013, an ¥8.0 billion gain on the sale of
shares in Mikuni Coca-Cola Bottling Co., Ltd.; a ¥6.2 billion gain on
the sale of shares in INPEX CORPORATION; a ¥4.8 billion gain on the
sale of shares in Nihon Unisys, Ltd.; a ¥4.4 billion gain on the sale
of shares in LME Holdings Limited; a ¥3.1 billion gain on the sale of
shares in MED3000 Group, Inc.; and a ¥3.0 billion gain on the sale of
shares in an iron & steel company were recorded, respectively.
Furthermore, MBK Healthcare Partners Limited (United Kingdom) recorded
a ¥5.5 billion gain related to equity dilution in IHH Healthcare Bhd.
(Malaysia) (*) The relevant gain includes a ¥5.3 billion gain due to
the dilution of MBK Healthcare Partners Limited’s stake in IHH
Healthcare Bhd. from 26.63% to 20.48% reflecting the issuance of new
shares by IHH Healthcare Bhd. upon its initial public offering on the
Bursa Malaysia and Singapore Exchange in July 2012.

For the corresponding previous year, a gain of ¥8.4 billion on the
sale of INPEX CORPORATION and a remeasurement gain of ¥3.6 billion on
existing interests resulting from acquisition of the entire stake in
Multigrain AG (Switzerland) were recorded.

Loss on write-downs of securities for the year ended March 31, 2013 was
¥27.3 billion, an improvement of ¥6.2 billion from ¥33.5 billion for the
corresponding previous year.

Due to a decline in share price, impairment losses on listed
securities of ¥4.9 billion in an iron & steel company and ¥3.0 billion
in Mitsui Chemicals Inc. were recorded for the year ended March 31,
2013. Furthermore, an impairment loss of ¥4.5 billion on preferred
shares of Valepar S.A. was recorded reflecting an other-than-temporary
decline related to a foreign exchange translation loss in the
investment value of the current portion of preferred shares.

For the corresponding previous year, an impairment loss of ¥4.1
billion on preferred shares of Valepar S.A. was recorded in the same
manner as the year ended March 31, 2013. An impairment loss of ¥4.0
billion on shares in Formosa Epitaxy Incorporation was recorded as
well. Furthermore, an impairment loss reflecting an
other-than-temporary decline in the investment value of
aviation-related stock was recorded.

Gain (Loss) on Disposal or Sales of Property and Equipment—Net

Gain on disposal or sales of property and equipment—net for the
year ended March 31, 2013 was ¥6.2 billion, an increase of ¥0.5 billion
from ¥5.7 billion for the corresponding previous year.

For the year ended March 31, 2013, a gain on sale of land used for
logistics in Canada was recorded.

For the corresponding previous year, a ¥4.5 billion gain on sale of
unused land in Japan was recorded.

Impairment Loss of Long-Lived Assets

Impairment loss of long-lived assets for the year ended March 31, 2013
was ¥12.3 billion, an improvement of ¥1.7 billion from ¥14.0 billion for
the corresponding previous year.

For the year ended March 31, 2013, Australian iron ore operations,
which are run as joint ventures with BHP Billiton through Mitsui Iron
Ore Development Pty. Ltd. and Mitsui-Itochu Iron Pty. Ltd., recorded
impairment losses totaling ¥6.4 billion for the revision of the
development sequence triggered by the suspension of pre-commitment
works for the outer harbour development option at Port Hedland in
Western Australia.

For the corresponding previous year, Mitsui & Co. Uranium Australia
Pty. Ltd. reported an impairment loss of ¥5.0 billion in mining
equipment and mineral rights due to its decision to withdraw from the
uranium mine development project in Australia.

Impairment Loss of Goodwill

There was no impairment loss of goodwill for the year ended March 31,
2013, and ¥4.2 billion of impairment loss of goodwill consisting of
miscellaneous small impairments was recorded for the corresponding
previous year.

Other Expenses (Income)—Net

Other expense—net for the year ended March 31, 2013 was ¥30.9
billion, a deterioration of ¥38.8 billion from income of ¥7.9 billion
for the corresponding previous year.

For the year ended March 31, 2013, exploration expenses totaled ¥37.4
billion including those recorded at oil and gas producing businesses.
Mitsui Oil Exploration Co., Ltd. recorded a foreign exchange
translation gain of ¥9.5 billion related to foreign currency deposits.
Meanwhile, Mitsui recorded foreign exchange losses of ¥22.9 billion,
including foreign exchange losses of ¥8.3 billion on foreign trade
transactions in the Iron & Steel Products Segment, as well as a
foreign exchange gain of ¥6.4 billion in the commodity derivatives
trading business in the Innovation & Cross Function Segment, which
corresponded to related revenues in the same segment.

For the corresponding previous year, Mitsui recorded foreign exchange
gain of ¥5.8 billion in the commodity derivatives trading business in
the Innovation & Cross Function Segment, which corresponded to related
revenues in the same segment. Mitsui Oil Exploration Co., Ltd.
recorded foreign exchange gains of ¥3.9 billion as well. Shark Bay
Salt Pty. Ltd. (Australia) recorded a gain of ¥5.8 billion in other
income-net as consideration for releasing a part of the mining lease
area to support the progress of an LNG project in the vicinity of the
salt field. Meanwhile, exploration expenses of ¥19.8 billion in total
were recorded, including those at oil and gas producing businesses.

Income Taxes

Income taxes for the year ended March 31, 2013 were ¥158.3 billion, a
decline of ¥14.3 billion from ¥172.6 billion for the corresponding
previous year.

“Income before income taxes and equity in earnings” and “equity
earnings of associated companies-net” declined.

Reversal of deferred tax liabilities related to dividends received
from the undistributed retained earnings of associated companies was
approximately ¥26.0 billion for the year ended March 31, 2013,
equivalent to the level for the corresponding previous year.

For the corresponding previous year, a positive impact was caused by
enactment of the Australian Mineral Resource Rent Tax Act 2012
(“MRRT”) which led to the recognition of deferred tax assets (net of
valuation allowances) for the operating assets subject to the MRRT.
Meanwhile, negative impacts were recorded due to the current tax
burden of the MRRT executed in July 2012, as well as the reversal of
deferred tax assets (net of valuation allowances) for the operating
assets subject to the MRRT (*).

For the year ended March 31, 2013, a ¥7.1 billion positive impact was
recorded due to the reversal of deferred tax assets and liabilities
attributable to factors including an evaluation of realizability of
deferred tax assets related to corporate income tax in Japan, as well
as a revision of the deferred tax rate applicable to the unrealized
holding gains on available-for-sale securities at Mitsui Oil
Exploration Co., Ltd.

For the corresponding previous year, a ¥26.1 billion one-time positive
impact, mainly consisted of a reversal of deferred tax liabilities on
undistributed retained earnings of associated companies, was recorded
due to a reduction of the Japanese corporate income tax rate, while a
¥7.7 billion negative impact of the valuation allowance against
deferred tax assets of the national corporate tax was also recorded.

The effective tax rate on “income from continuing operations before
income taxes and equity in earnings” for the year ended March 31, 2013
was 50.4%, an increase of 8.6% from 41.8% for the corresponding previous
year. The major factors for the increase were the reversal effect of the
one-time positive impact of the aforementioned tax rate reduction and
enactment of the Australian Mineral Resource Rent Tax recorded in the
corresponding previous year, while factors for the decrease include the
decline in deferred tax burden related to the undistributed retained
earnings of associated companies.

(*) Entities have the option to elect to uplift the tax book values of
assets as of the end of May 2010 to the market value, at the adoption of
the Australian Mineral Resource Rent Tax Act 2012, which can be
depreciated up to 25 years for taxable income calculation purposes. Our
iron ore and coal producing businesses intend to apply the uplift
allowance to the operating assets subject to the Mineral Resource Rent
Tax. The Mineral Resource Rent Tax is regarded as a kind of corporate
income tax and is subject to tax effect accounting. We record deferred
tax assets for the difference in the book values for accounting purposes
and tax purposes (the present market value based on our best
estimation), and apply a valuation allowance for the portion we believe
is not more likely than not to be realized.

Equity in Earnings of Associated Companies—Net

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥176.2 billion, a decline of ¥55.9 billion from ¥232.1 billion
for the corresponding previous year as a result of the following:

A decline of ¥67.3 billion was recorded at Valepar S.A. (Brazil),
mainly due to a decline in iron ore prices and impairment losses on
nickel and aluminium assets.

Earnings at Robe River Mining Co. Pty. Ltd. (Australia) reported a
decline of ¥17.9 billion, due to the decline in iron ore prices and an
increase in income taxes related to the Australian Mineral Resource
Rent Tax, which was partially offset by the positive effect of an
increase in sales volume led by both the effect of incremental
capacity and the reversal effect of unseasonably wet weather for the
corresponding previous year.

Compañía Minera Doña Inés de Collahuasi SCM (Chile) reported a decline
of ¥11.8 billion, mainly due to a decline in sales volume.

Due to a decline in share price, impairment losses on investments of
¥33.1 billion in total, including ¥18.3 billion for TPV Technology
Limited, ¥6.7 billion for Moshi Moshi Hotline, Inc. and ¥6.0 billion
for Nihon Unisys, Ltd., were recorded in equity earnings of associated
companies-net for the corresponding previous year. In addition to the
impairment loss of ¥6.0 billion in investment, equity in losses of
¥3.3 billion was recorded at Nihon Unisys, Ltd. mainly due to the
setting up of valuation allowances for its deferred tax assets for the
year ended March 31, 2012.

As a result, net income attributable to Mitsui & Co., Ltd. for the year
ended March 31, 2013 was ¥307.9 billion, a decline of ¥126.6 billion
from ¥434.5 billion for the corresponding previous year.

[Diagram omitted]

2) Operating Results by Operating Segment

Effective April 1, 2012, we changed our reportable operating segments.
In accordance with this change, the operating segment information for
the year ended March 31, 2012 has been restated to conform to the
current year presentation. In addition, starting from the year ended
March 31, 2013, we changed the headquarters’ cost allocation system from
partial allocation to full allocation to the operating segments. The
impact of this change on operating income (loss) and net income (loss)
attributable to Mitsui & Co., Ltd. for each operating segment for the
year ended March 31, 2013 was as follows:

(Billions of yen)

Impact on

Operating Income (Loss)

Impact on Net income (Loss)

attributable to Mitsui & Co., Ltd.

Iron & Steel Products

(2.0)

(1.5)

Mineral & Metal Resources

(10.9)

(8.1)

Machinery & Infrastructure

(7.4)

(5.5)

Chemicals

(4.6)

(3.4)

Energy

(10.3)

(7.6)

Lifestyle

(7.5)

(5.6)

Innovation & Cross Function

(4.0)

(3.0)

Americas

-

-

Europe, the Middle East and Africa

-

-

Asia Pacific

-

-

All Other/Adjustments and Eliminations

46.6

34.7

Consolidated Total

0

0

Iron & Steel Products Segment

Gross profit for the year ended March 31, 2013 was ¥40.6 billion, a
decline of ¥2.2 billion from ¥42.8 billion for the corresponding
previous year. The main cause of decline was sluggish market conditions
for steel products and reduction in export volumes from Japan caused by
appreciation of the Japanese yen.

Operating income for the year ended March 31, 2013 was ¥3.6 billion, a
decline of ¥6.0 billion from ¥9.6 billion for the corresponding previous
year.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥3.1 billion, a decline of ¥0.9 billion from ¥4.0 billion for
the corresponding previous year.

Net loss attributable to Mitsui & Co., Ltd. for the year ended March 31,
2013 was ¥2.9 billion, a decline of ¥12.4 billion from net income of
¥9.5 billion for the corresponding previous year. In addition to the
above-mentioned factors, foreign exchange losses of ¥8.3 billion on
foreign trade transactions were recorded for the year ended March 31,
2013.

[Diagram omitted]

Mineral & Metal Resources Segment

Gross profit for the year ended March 31, 2013 was ¥158.7 billion, a
decline of ¥36.1 billion from ¥194.8 billion for the corresponding
previous year. The main factor behind the decline was the decrease in
iron ore prices.

The majority of contract prices applied for products sold during the
corresponding previous year were based on a daily average of spot
reference prices during the twelve-month period starting from December
1, 2010 through November 30, 2011.

Reflecting the transition to a more diversified sales contract portfolio
starting from the three-month period ended December 31, 2011, however,
the majority of contract prices applied for products sold during the
year ended March 31, 2013 were based on pricing that reflects current
spot reference prices, such as the daily average of spot reference
prices for the current quarter of shipment and a daily average of spot
reference prices for the shipment month.

Mitsui Iron Ore Development Pty. Ltd. reported a decline of ¥26.1
billion in gross profit reflecting the decline in iron ore prices, which
was partially offset by the positive effect of increases in sales volume
caused by both the effect of incremental capacity and the reversal
effect of unseasonably wet weather for the corresponding previous year.
Mitsui-Itochu Iron Pty. Ltd. also recorded a decline of ¥11.2 billion
due to the decline in iron ore prices.

Operating income for the year ended March 31, 2013 was ¥123.9 billion, a
decline of ¥49.2 billion from ¥173.1 billion for the corresponding
previous year. In addition to a decline in gross profit, selling,
general and administrative expenses increased.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥42.9 billion, a decline of ¥88.3 billion from ¥131.2 billion
for the corresponding previous year. Major factors were as follows:

Valepar S.A. posted earnings of ¥7.8 billion, a decline of ¥67.3
billion from ¥75.1 billion for the corresponding previous year, mainly
due to a decline in iron ore prices and impairment losses including
those on nickel and aluminium assets.

Earnings at Robe River Mining Co. Pty. Ltd. were ¥31.1 billion, a
decline of ¥17.9 billion from ¥49.0 billion for the corresponding
previous year. This was due to the decline in iron ore prices and
increased tax burden related to the Australian Mineral Resource Rent
Tax Act 2012, despite an increase in sales volume led by both the
effect of incremental capacity and the reversal effect of unseasonably
wet weather for the corresponding previous year.

Compañía Minera Doña Inés de Collahuasi SCM recorded earnings of ¥2.6
billion, a decline of ¥11.8 billion from ¥14.4 billion for the
corresponding previous year mainly due to a decline in sales volume.

Due to the dilution of ownership interest in Vale Nouvelle-Calédonie
S.A.S. held by SUMIC Nickel Netherlands B.V., a ¥9.2 billion gain on
the equity dilution was recorded.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥90.5 billion, a decline of ¥110.8 billion from ¥201.3
billion for the corresponding previous year. In addition to the
above-mentioned factors, the following factors also affected results:

For the year ended March 31, 2013, deferred commitment fee related to
the loan extended to the subsidiary of Codelco was recorded on
interest income.

For the year ended March 31, 2013, Australian iron ore operations,
which are run as joint ventures with BHP Billiton through Mitsui Iron
Ore Development Pty. Ltd. and Mitsui-Itochu Iron Pty. Ltd., recorded
impairment losses totaling ¥6.4 billion for the revision of the
development sequence triggered by the suspension of pre-commitment
works for the outer harbour development option at Port Hedland in
Western Australia.

Australian iron ore operations recorded a negative impact of ¥6.7
billion in total, resulting from the current tax burden of the MRRT
and the reversal of deferred tax assets (net of valuation allowances)
for the operating assets subject to the MRRT for the year ended March
31, 2013. On the other hand, Australian iron ore operations recorded a
positive impact of ¥18.1 billion in income taxes caused by enactment
of the MRRT, which included the positive impact of the Robe River
Mining Co. Pty. Ltd. recorded in equity in earnings of associated
companies (including tax effect on undistributed retained earnings),
for the corresponding previous year.

For the corresponding previous year, an ¥11.9 billion one-time
positive impact was recorded in income taxes due to the reduction of
the Japanese corporate income tax rate. The main cause of the positive
impact was the reversal of deferred tax liabilities on undistributed
retained earnings of associated companies.

Reversal of deferred tax liabilities on undistributed retained
earnings of associated companies at the time of profit distribution
decreased by approximately ¥8.0 billion from the corresponding
previous year.

Machinery & Infrastructure Segment

Gross profit for the year ended March 31, 2013 was ¥104.3 billion, an
increase of ¥10.3 billion from ¥94.0 billion for the corresponding
previous year.

The Infrastructure Projects Business Unit reported an increase of ¥1.3
billion.

The Motor Vehicles & Construction Machinery Business Unit reported an
increase of ¥3.1 billion. Mining and construction machinery-related
businesses in the Americas achieved a solid performance.

The Marine & Aerospace Business Unit reported an increase of ¥6.0
billion due to a reversal effect of a loss allowance for vessels under
construction recorded in the corresponding previous year.

Operating loss for the year ended March 31, 2013 was ¥8.3 billion, a
deterioration of ¥0.1 billion from ¥8.2 billion for the corresponding
previous year. Despite the increase in gross profit, selling, general
and administrative expenses increased.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥32.0 billion, a decline of ¥6.0 billion from ¥38.0 billion for
the corresponding previous year.

The Infrastructure Projects Business Unit reported a decline of ¥2.9
billion. Overseas power producers reported equity in earnings of ¥12.3
billion in total, the same amount as the corresponding previous year.
Mark-to-market valuation gains and losses, such as those on long-term
power derivative contracts and long-term fuel purchase contracts,
declined by ¥1.1 billion to a loss of ¥1.0 billion from a gain of ¥0.1
billion for the corresponding previous year. Meanwhile, Paiton 3 in
Indonesia and Hezhou in China, both coal-fired power plants, started
to contribute along with the commencement of commercial operation.

The Motor Vehicles & Construction Machinery Business Unit reported an
increase of ¥1.7 billion. Although motorcycle manufacturing and
distributing business in Indonesia reported a decline,
automotive-related businesses in North America and Asia reported an
increase.

The Marine & Aerospace Business Unit reported a decline of ¥4.8
billion, reflecting a reversal effect of the gain on reversal of a
loss allowance at the LNG vessels chartering business recorded in the
corresponding previous year.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥20.5 billion, an increase of ¥2.8 billion from ¥17.7
billion for the corresponding previous year. In addition to the above
factors, there are the following factors.

For the corresponding previous year, a ¥4.0 billion one-time positive
impact was recorded in income taxes due to the reduction of the
Japanese corporate income tax rate. The main cause of the positive
impact was the reversal of deferred tax liabilities on undistributed
retained earnings of associated companies.

For the corresponding previous year, an impairment loss on an
aviation-related stock was recorded reflecting an other-than-temporary
decline in the investment value.

Chemicals Segment

Gross profit for the year ended March 31, 2013 was ¥69.1 billion, an
increase of ¥3.9 billion from ¥65.2 billion for the corresponding
previous year. P.T. Kaltim Pasifik Amoniak (Indonesia) reported an
increase of 3.8 billion due to higher ammonia prices.

Operating income for the year ended March 31, 2013 was ¥7.4 billion, a
decline of ¥2.9 billion from ¥10.3 billion for the corresponding
previous year. The increase in selling, general and administrative
expenses surpassed the amount of increase in gross profit.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥6.6 billion, a decline of ¥0.1 billion from ¥6.7 billion for
the corresponding previous year.

Net loss attributable to Mitsui & Co., Ltd. for the year ended March 31,
2013 was ¥1.3 billion, a deterioration of ¥10.4 billion from net income
of ¥9.1 billion for the corresponding previous year.

In addition to the above-mentioned factors, the following factors also
affected results:

For the corresponding previous year, Shark Bay Salt Pty. Ltd. recorded
a gain of ¥5.8 billion in other income-net as consideration for
releasing a part of the mining lease area to support the progress of
an LNG project in the vicinity of the salt field, which was partly
offset by its impairment loss of goodwill.

For the year ended March 31, 2013, this segment recorded an impairment
loss of ¥3.0 billion on listed securities in Mitsui Chemicals Inc.
reflecting the decline in share price.

Energy Segment

The weighted average crude oil prices applied to our operating results
for the year ended March 31, 2013 and 2012 were estimated to be US$114
and US$108 per barrel, respectively.

Gross profit for the year ended March 31, 2013 was ¥190.7 billion, a
decline of ¥28.4 billion from ¥219.1 billion for the corresponding
previous year, primarily due to the following factors:

Mitsui Oil Exploration Co., Ltd. reported an increase of ¥22.2 billion
due to increases in both production volume and oil prices. Mitsui E&P
Texas LP, which acquired a working interest in the Eagle Ford shale
project during the three-month period ended December 31, 2011, and was
consolidated with a three-month time lag, recorded a gross profit of
¥6.7 billion.

Mitsui Coal Holdings Pty. Ltd. reported a decline of ¥32.4 billion due
to lower coal prices, in spite of the reduction in production costs.

Mitsui E&P USA LLC reported a decline of ¥11.6 billion due to an
increase in depreciation costs as well as a decline in gas prices in
the United States, despite an increase in production volume.

A decline in gross profit of ¥7.8 billion and ¥3.3 billion
respectively were recorded in petroleum trading activities of Mitsui,
as well as in Mitsui Oil Co., Ltd., due to deterioration of market
conditions.

Operating income for the year ended March 31, 2013 was ¥134.9 billion, a
decline of ¥38.6 billion from ¥173.5 billion for the corresponding
previous year. In addition to a decline in gross profit, selling,
general and administrative expenses increased.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥56.7 billion, an increase of ¥2.8 billion from ¥53.9 billion
for the corresponding previous year. Japan Australia LNG (MIMI) Pty.
Ltd. reported an increase due to higher oil prices.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥164.8 billion, a decline of ¥23.3 billion from ¥188.1
billion for the corresponding previous year. In addition to the
above-mentioned factors, the following factors also affected results:

Dividends from six LNG projects (Abu Dhabi, Oman, Qatargas 1 and 3,
Equatorial Guinea and Sakhalin II) were ¥61.2 billion in total, a
decline of ¥7.4 billion from ¥68.6 billion for the corresponding
previous year, due mainly to a decline in dividends received from the
Sakhalin II project.

For the year ended March 31, 2013, Mitsui Oil Exploration Co., Ltd.
recorded a ¥22.0 billion one-time positive impact on income taxes due
to the reversal of deferred tax liabilities associated with a revision
of the deferred tax rate applicable to the unrealized holding gains on
available-for-sale securities. Net income attributable to
noncontrolling interests of Mitsui Oil Exploration Co., Ltd. increased
by ¥7.4 billion from the corresponding previous year mainly due to
such positive impact on income taxes.

Reversal of deferred tax liabilities on undistributed retained
earnings of associated companies at the time of profit distribution
increased by approximately ¥8.5 billion from the corresponding
previous year.

For the year ended March 31, 2013, Mitsui Oil Exploration Co., Ltd.
recorded a gain of ¥6.2 billion on the sale of shares in INPEX
CORPORATION. For the corresponding previous year, Mitsui and Mitsui
Oil Exploration Co., Ltd. recorded gains of ¥8.4 billion in total on
the sale of the same shares.

For the year ended March 31, 2013, exploration expenses of ¥36.1
billion in total were recorded in other expenses-net, including those
recorded by Mitsui E&P Mozambique Area 1 Limited, Mitsui Oil
Exploration Co., Ltd. and Mitsui E&P Australia Pty Limited
(Australia). For the corresponding previous year, Mitsui Oil
Exploration Co., Ltd. recorded foreign exchange gains of ¥3.9 billion,
while exploration expenses totaled ¥18.9 billion including those
recorded by Mitsui E&P Australia Pty Limited and Mitsui Oil
Exploration Co., Ltd.

For the corresponding previous year, a ¥5.1 billion one-time positive
impact was recorded in income taxes due to the reduction of the
Japanese corporate income tax rate. The main cause of the positive
impact was the reversal of deferred tax liabilities on undistributed
retained earnings of associated companies.

For the corresponding previous year, Mitsui & Co. Uranium Australia
Pty. Ltd. reported an impairment loss of ¥5.0 billion in mining
equipment and mineral rights due to its decision to withdraw from a
uranium mine development project in Australia, while at the same time
a ¥4.0 billion positive impact was recorded on income taxes due to the
recording of deferred tax assets.

[Diagram omitted]

Lifestyle Segment

Gross profit for the year ended March 31, 2013 was ¥106.0 billion, a
decline of ¥6.0 billion from ¥112.0 billion for the corresponding
previous year.

The Food Resources Business Unit reported a decline of ¥4.2 billion
due to the decline in trading business of grain reflecting lower
prices.

The Food Products & Services Business Unit recorded a decline of ¥2.8
billion, reflecting the reversal effect of a ¥4.7 billion
mark-to-market valuation gains on commodity derivative contracts
related to coffee for the corresponding previous year.

The Consumer Service Business Unit reported an increase of ¥1.1
billion.

Operating loss for the year ended March 31, 2013 was ¥5.5 billion, a
decline of ¥16.1 billion from operating income of ¥10.6 billion for the
corresponding previous year. In addition to the decline in gross profit,
selling, general and administrative expenses increased.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥8.3 billion, a decline of ¥1.0 billion from ¥9.3 billion for
the corresponding previous year.

The Food Resources Business Unit reported an increase of ¥0.5 billion.
This business unit recorded a ¥2.9 billion impairment loss on listed
securities in Mitsui Sugar Co., Ltd. for the year ended March 31,
2013, reflecting the decline in share price.

The Food Products & Services Business Unit recorded a decline of ¥0.1
billion.

The Consumer Service Business Unit reported a decline of ¥1.4 billion.
IHH Healthcare Bhd., in which MBK Healthcare Partners Limited
invested, recorded an increase of ¥2.1 billion. Meanwhile, an
impairment loss reflecting an other-than-temporary decline in the
investment value was recorded for another associated company.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥10.3 billion, a decline of ¥6.7 billion from ¥17.0 billion
for the corresponding previous year. In addition to the above-mentioned
factors, the following factors also affected results:

For the year ended March 31, 2013, this segment reported a gain of
¥8.0 billion on the sale of shares in Mikuni Coca-Cola Bottling Co.,
Ltd.

MBK Healthcare Partners Limited recorded a ¥5.5 billion gain related
to equity dilution in IHH Healthcare Bhd. The relevant gain includes a
¥5.3 billion gain due to the dilution of MBK Healthcare Partners
Limited’s stake in IHH Healthcare Bhd. from 26.63% to 20.48%
reflecting the issuance of new shares by IHH Healthcare Bhd. upon its
initial public offering on the Bursa Malaysia and Singapore Exchange
in July 2012.

For the corresponding previous year, this segment recorded a ¥3.6
billion remeasurement gain due to the reclassification of Multigrain
AG.

Innovation & Cross Function Segment

Gross profit for the year ended March 31, 2013 was ¥41.4 billion, a
decrease of ¥12.1 billion from ¥53.5 billion for the corresponding
previous year.

The IT Business Unit reported a decline of ¥1.7 billion.

The Financial & New Business Unit reported a decrease of ¥12.1
billion. Mitsui & Co. Commodity Risk Management Ltd. posted a decline
of ¥6.4 billion due to underperforming derivatives trading. Gross
profits corresponding to foreign exchange gains of ¥6.4 billion and
¥5.8 billion related to the commodity derivatives trading business at
Mitsui posted in other expenses-net were included in gross profit for
the year ended March 31, 2013 and for the corresponding previous year,
respectively.

The Transportation Logistics Business Unit reported an increase of
¥1.6 billion.

Operating loss for the year ended March 31, 2013 was ¥32.9 billion, a
deterioration of ¥12.8 billion from ¥20.1 billion for the corresponding
previous year.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥18.0 billion, an increase of ¥38.4 billion from equity in
losses of ¥20.4 billion for the corresponding previous year. Reflecting
the decline in share price, this segment recorded impairment losses on
listed securities for the amount of ¥18.3 billion in TPV Technology
Limited, ¥6.7 billion in Moshi Moshi Hotline, Inc. and ¥6.0 billion in
Nihon Unisys, Ltd., for the year ended March 31, 2012. In addition to
the impairment loss of ¥6.0 billion in investment, equity in losses of
¥3.3 billion was recorded at Nihon Unisys, Ltd. mainly due to the
setting up of valuation allowances for its deferred tax assets for the
year ended March 31, 2012.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥3.6 billion, an increase of ¥35.8 billion from net loss of
¥32.2 billion for the corresponding previous year. In addition to the
above-mentioned factors, there were the following factors:

For the year ended March 31, 2013, this segment reported a gain of
¥4.8 billion on the sale of shares in Nihon Unisys, Ltd.

For the year ended March 31, 2013, Mitsui Bussan Commodities Ltd.
(United Kingdom) recorded a gain of ¥4.3 billion on the sale of shares
in LME Holdings Limited.

For the corresponding previous year, this segment recorded a ¥4.0
billion impairment loss on shares in Formosa Epitaxy Incorporation and
a ¥2.7 billion impairment loss on shares in QIWI Limited in Russia.

For the year ended March 31, 2012, Trinet Logistics Co., Ltd. (Japan),
a warehousing company, recorded a ¥3.2 billion gain on sales of unused
land in Japan.

For the year ended March 31, 2013 and for the corresponding previous
year, foreign exchange gains of ¥6.4 billion and ¥5.8 billion,
respectively, were posted in other expense-net in relation to the
commodity derivatives trading business at Mitsui.

Americas Segment

Gross profit for the year ended March 31, 2013 was ¥66.0 billion, a
decline of ¥9.6 billion from ¥75.6 billion for the corresponding
previous year. Novus International, Inc. reported a decline of ¥6.7
billion due to a decline in sales price of methionine as well as a
write-down on inventories of feed additives other than methionine.

Operating income for the year ended March 31, 2013 was ¥11.4 billion, a
decline of ¥12.9 billion from ¥24.3 billion for the corresponding
previous year. In addition to the decline in gross profit, this segment
reported increases in the provision for doubtful receivables and in
general and administrative expenses.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥3.5 billion, a decline of ¥0.8 billion from ¥4.3 billion for
the corresponding previous year.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥12.4 billion, a decline of ¥4.0 billion from ¥16.4 billion
for the corresponding previous year. In addition to the above-mentioned
factors, for the year ended March 31, 2013, this segment recorded a gain
of ¥3.1 billion on the sale of shares in MED3000 Group, Inc.

Europe, the Middle East and Africa Segment

Gross profit for the year ended March 31, 2013 was ¥15.6 billion, a
decline of ¥2.6 billion from ¥18.2 billion for the corresponding
previous year.

Operating loss for the year ended March 31, 2013 was ¥3.7 billion, a
deterioration of ¥3.0 billion from ¥0.7 billion for the corresponding
previous year.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥0.4 billion, a decline of ¥0.1 billion from ¥0.5 billion for
the corresponding previous year.

Net loss attributable to Mitsui & Co., Ltd. for the year ended March 31,
2013 was ¥0.9 billion, a decline of ¥2.1 billion from ¥1.2 billion of
net profit for the corresponding previous year.

Asia Pacific Segment

Gross profit for the year ended March 31, 2013 was ¥10.5 billion, a
decline of ¥1.2 billion from ¥11.7 billion for the corresponding
previous year.

Operating loss for the year ended March 31, 2013 was ¥5.9 billion, a
deterioration of ¥1.7 billion from ¥4.2 billion for the corresponding
previous year.

Equity in earnings of associated companies for the year ended March 31,
2013 was ¥4.9 billion, an increase of ¥0.2 billion from ¥4.7 billion for
the corresponding previous year.

Net income attributable to Mitsui & Co., Ltd. for the year ended March
31, 2013 was ¥27.5 billion, a decline of ¥21.7 billion from ¥49.2
billion for the corresponding previous year. In addition to the
above-mentioned factors, this segment recorded earnings from the
segment’s minority interest in Mitsui Iron Ore Development Pty. Ltd.,
Mitsui-Itochu Iron Pty. Ltd. and Mitsui Coal Holdings Pty. Ltd., which
were lower due to declines in the prices of iron ore and coal.

(3) Financial Condition and Cash Flows

1) Financial Condition

Total assets as of March 31, 2013 were ¥10,324.6 billion, an increase of
¥1,312.8 billion from ¥9,011.8 billion as of March 31, 2012.

Total current assets as of March 31, 2013 were ¥4,631.5 billion, an
increase of ¥205.2 billion from ¥4,426.3 billion as of March 31, 2012.
Inventories increased by ¥230.8 billion. Certain physical commodity swap
transactions related to precious metals, which were previously accounted
for as derivative transactions, are accounted for as financings from the
three-month period ended December 31, 2012, and as a result, an increase
of ¥139.0 billion in inventories was reported. Furthermore, increases in
inventories of ¥20.1 billion and ¥11.0 billion were reported due to an
increase in trading volume at petroleum trading business and the mining
and construction machinery-related business in South America. Cinco Pipe
& Supply, LLC, a newly acquired oil and gas well tubular distributor in
the United States, also reported an increase of ¥15.4 billion.

Total current liabilities as of March 31, 2013 increased by ¥421.3
billion to ¥3,045.3 billion from ¥2,624.0 billion as of March 31, 2012.
Short-term debt increased by ¥356.0 billion, including an increase of
¥143.1 billion due to the aforementioned change related to physical
commodities swap transactions.

As a result, working capital, or current assets less current
liabilities, as of March 31, 2013 totaled ¥1,586.2 billion, a decline of
¥216.1 billion from ¥1,802.3 billion as of March 31, 2012.

[Diagram omitted]

The sum of “total investments and non-current receivables,” “net
property and equipment,” “intangible assets, less accumulated
amortization,” “deferred tax assets-non-current,” and “other assets” as
of March 31, 2013 totaled ¥5,693.1 billion, an increase of ¥1,107.6
billion from ¥4,585.5 billion as of March 31, 2012, mainly due to the
following factors:

Total of investments and non-current receivables as of March 31, 2013
was ¥3,958.8 billion, an increase of ¥767.1 billion from ¥3,191.7
billion as of March 31, 2012.

Within this category, investments in and advances to associated
companies as of March 31, 2013 was ¥2,325.3 billion, an increase of
¥616.2 billion from ¥1,709.1 billion as of March 31, 2012. Major factors
were as follows:

An increase of ¥166.6 billion due to an acquisition of 32.20% stake in
Inversiones Mineras Acrux SpA (Chile), a joint venture with Codelco;

An increase of ¥85.7 billion due to an additional investment in Japan
Australia LNG (MIMI) Pty. Ltd. for the acquisition of working
interests in the Browse LNG project;

An increase of ¥24.1 billion due to an investment in the Caserones
copper and molybdenum project in Chile;

An increase of ¥20.9 billion due to investments in and loans to FPSO
(Floating Production, Storage and Offloading vessel) leasing
businesses for oil and gas production in Brazil;

An increase due to an acquisition of a 30% stake in renewable energy
power generation projects in Canada;

An increase of ¥9.4 billion due to an acquisition of a 49.9% stake in
National Plant and Equipment Pty Ltd., an Australian mining equipment
rental company;

Factors that do not involve cash flow included net increases in equity
earnings of ¥49.4 billion (net of ¥126.8 billion in dividends received
from associated companies) as well as an increase of ¥224.3 billion
resulting from a foreign exchange translation adjustment on foreign
investments due to the depreciation of the Japanese yen.

Other investments as of March 31, 2013 were ¥816.3 billion, an increase
of ¥23.8 billion from ¥792.5 billion as of March 31, 2012, mainly due to
the following factors:

A decline of ¥12.5 billion in the loan to Grace Ocean Private Limited,
a ship-owning company, mainly due to collection of loans.

Property leased to others—at cost, less accumulated depreciation
as of March 31, 2013, totaled ¥330.6 billion, an increase of ¥57.9
billion from ¥272.7 billion as of March 31, 2012, mainly due to the
following factors:

An increase of leased rolling stock for ¥17.4 billion (including a
foreign exchange translation gain of ¥9.2 billion); and

An increase of ¥10.0 billion at ME Serviços de Energia do Brasil
Participações Ltda., a newly acquired energy service company in Brazil.

Net property and equipment as of March 31, 2013 totaled ¥1,570.3
billion, an increase of ¥314.4 billion from ¥1,255.9 billion as of March
31, 2012, mainly due to the following factors:

An increase of ¥107.8 billion (including a foreign exchange
translation gain of ¥33.4 billion) at the Marcellus and Eagle Ford
shale gas and oil projects in the United States;

An increase of ¥41.8 billion (including a foreign exchange translation
gain of ¥17.5 billion) at oil & gas projects other than shale gas and
oil projects; and

An increase of ¥33.5 billion (including a foreign exchange translation
gain of ¥24.1 billion) at coal mining projects in Australia.

Long-term debt less current maturities as of March 31, 2013 was ¥3,185.0
billion, an increase of ¥286.8 billion from ¥2,898.2 billion as of March
31, 2012. Oriente Copper Netherlands B.V. (Netherlands) and a financial
subsidiary in the United States reported an increase in long-term
borrowings.

Total Mitsui & Co., Ltd. shareholders’ equity as of March 31, 2013 was
¥3,181.8 billion, an increase of ¥540.5 billion from ¥2,641.3 billion as
of March 31, 2012. The major component of the increase was a net
increase of ¥285.6 billion in foreign currency translation adjustments
mainly due to appreciation of the Australian dollar, US dollar and
Brazilian real against the Japanese yen. Furthermore, retained earnings
increased by ¥216.7 billion and unrealized holding gains on
available-for-sale securities increased by ¥45.3 billion reflecting the
higher stock prices.

As a result, the equity-to-asset ratio as of March 31, 2013, was 30.8%,
1.5 points higher compared to 29.3% as of March 31, 2012. Net
interest-bearing debt, or interest-bearing debt less cash and cash
equivalents and time deposits as of March 31, 2013 was ¥2,839.4 billion,
an increase of ¥696.6 billion from ¥2,142.8 billion as of March 31,
2012. The net debt-to-equity ratio (DER) as of March 31, 2013 was 0.89
times, 0.08 points higher compared to 0.81 times as of March 31, 2012.

[Table omitted]

2) Cash Flows

Cash Flows from Operating Activities

Net cash provided by operating activities for the year ended March 31,
2013 was ¥461.4 billion, an increase of ¥80.4 billion from ¥381.0
billion for the corresponding previous year. Major components of net
cash provided by operating activities were our operating income of
¥254.6 billion, dividend income of ¥195.8 billion, including dividends
received from associated companies, and net cash inflow of ¥2.4 billion
from a decline in working capital, or changes in operating assets and
liabilities.

Compared with the corresponding previous year, while operating income
declined by ¥93.8 billion and dividend income declined by ¥49.9 billion,
net cash flow from increases and decreases in working capital improved
by ¥209.0 billion.

Cash Flows from Investing Activities

Net cash used in investing activities for the year ended March 31, 2013
was ¥753.3 billion, an increase of ¥315.1 billion from ¥438.2 billion
for the corresponding previous year. The net cash used in investing
activities consisted of:

Net outflows of cash that corresponded to investments in and advances
to associated companies (net of sales of investments in and collection
of advances to associated companies) were ¥230.6 billion. The major
cash outflows were as follows:

An acquisition of a 16.95% stake in Inversiones Mineras Acrux SpA
for ¥85.9 billion (*);

An investment in the Caserones copper and molybdenum project in
Chile for ¥24.1 billion;

Investments in and loans to FPSO leasing businesses for oil and
gas production in Brazil for ¥20.9 billion;

An acquisition of a 30% stake in renewable energy power generation
projects in Canada; and

An acquisition of a 49.9% stake in National Plant and Equipment
Pty Ltd. for ¥9.4 billion.

The major cash inflows were the partial sale of shares in Mikuni
Coca-Cola Bottling Co., Ltd. for ¥15.5 billion and the partial sale of
shares in Nihon Unisys, Ltd. for ¥11.4 billion.

Net inflows of cash that corresponded to other investments (net of
sales and redemption of other investments) were ¥9.2 billion. Cash
inflows mainly consisted of a capital redemption from Sakhalin Energy
Investment Company Ltd for ¥31.7 billion. Meanwhile, major cash
expenditures included an acquisition of oil and gas concessions in the
UK North Sea for ¥21.3 billion and an investment in Sodrugestvo Group
S.A. for ¥9.4 billion.

Net outflows of cash that corresponded to long-term loan receivables
(net of collection) were ¥132.6 billion. Increases in long-term loans
mainly consisted of the loan to Codelco’s subsidiary for ¥146.7
billion (*). The major cash inflows was from collection of a loan for
¥13.6 billion from Grace Ocean Private Limited as well as a cash
inflow of ¥10.0 billion due to the decline in loan receivables at PT.
Bussan Auto Finance.

Net outflows of cash relating to purchases of property leased to
others and property and equipment (net of sales of those assets) were
¥398.9 billion. Major expenditures included:

Marcellus and Eagle Ford shale gas and oil projects in the United
States for ¥112.0 billion;

Iron ore mining projects in Australia for ¥91.1 billion;

Oil and gas projects other than the U.S. shale gas and oil
projects for a total of ¥84.1 billion;

Coal mining projects in Australia for ¥29.1 billion; and

Leased rolling stock for ¥22.2 billion.

(*) We currently have a 32.20% stake in Inversiones Mineras Acrux SpA as
a result of repayment of a part of the loan extended to Codelco’s
subsidiary with the 15.25% stake in Inversiones Mineras Acrux SpA in
November 2012.

Free cash flow, or the sum of net cash provided by operating activities
and net cash used in investing activities, for the year ended March 31,
2013 was a net outflow of ¥291.9 billion.

Cash Flows from Financing Activities

For the year ended March 31, 2013, net cash provided by financing
activities was ¥221.6 billion, an increase of ¥164.2 billion from net
cash provided by financing activities of ¥57.4 billion for the
corresponding previous year. Cash outflows from payments of cash
dividends were ¥91.3 billion. The net cash inflow from the borrowing of
short-term debt was ¥161.5 billion and the net cash inflow from the
borrowing of long-term debt was ¥150.5 billion.

In addition to the changes discussed above, there was an increase in
cash and cash equivalents of ¥64.3 billion due to foreign exchange
translation; as a result, cash and cash equivalents as of March 31, 2013
totaled ¥1,425.2 billion, a decline of ¥5.9 billion from
¥1,431.1 billion as of March 31, 2012.

2. Management Policy

(1) Progress with the Medium-term Management
Plan to March 31, 2014

1) Progress in five key initiatives

Progress in five key initiatives for the Medium-term Management Plan was
as follows:

(a) Reinforcement of the earnings base and business engineering
capabilities

i) Focus on upstream resource businesses

In the Metals business area, we acquired a working interest in copper,
through the joint holding of Anglo American Sur shares with Codelco,
and expansion of iron ore export port capacity owned by Robe River J/V
was decided;

In the Energy business area, oil and gas concessions in the UK North
Sea were acquired and an agreement was concluded to acquire an oil
field in Italy;

In the Chemicals business area, a basic agreement was signed with
Idemitsu Kosan Co., Ltd. for joint production and marketing of alpha
olefins that utilizes the shale gas produced in the United States; and
an initial agreement was also reached with The Dow Chemical Company of
the United States concerning the procurement of feedstock for the
production and the supply of a part of its production.

In the Lifestyle business area, progress was made in enhancing the
global grain collection network with projects such as investment in
Sodrugestvo Group S.A. in Russia.

ii) Reinforcement of initiatives in the natural gas value chain

Progress was seen in commercialization projects for LNG in the United
States, Australia and Mozambique. In our shale gas related businesses in
the United States, we are making progress connecting the natural gas
value chain to the chemical businesses by utilizing our business
engineering capabilities: an example would include the above-mentioned
project with Idemitsu Kosan Co., Ltd. In Mexico, besides participating
in the business of this country’s largest natural gas distribution
company, the LNG receiving terminal, a project in which we played an
initiative role during the development stage, started operation.

iii) Proactive approach to capture the momentum of growth in emerging
economies and to meet global industrial requirement.

We have made steady progress with initiatives in emerging economies in
each business areas, from upstream to downstream businesses. In the
Machinery & Infrastructure business area, operations have started and
contributions are being made to profits by a coal-fired thermal power
plant project in Hezhou, China, automobile assembly business in Russian
Far East, and drillship and FPSO projects in Brazil. In the Lifestyle
business area, we have expanded our hospital and related businesses,
utilizing IHH Healthcare Bhd. as a business platform.

iv) Elevation of functional capabilities and reinforcement of challenges
to create and incubate new businesses

As initiatives to create and incubate new businesses, in the Metals
business area, we are endeavoring to build a functional platform within
the value chain of iron and steel products and automobiles, and to
attain this aim, agreed to invest in Gestamp Automoción S.L.’s North and
South American operations.

In addition, to elevate functional capabilities, aiming to integrate
finance, logistics and IT functions and to further contribute to
company-wide earnings, we have established the Innovation & Corporate
Development Business Unit on April 1, 2013.

v) Enhancement of partnership strategy

We have strengthened the relationship with Codelco by conducting a
strategic alliance agreement. In addition, in emerging countries such as
Indonesia, India, Singapore and Thailand, we have strengthened the
relationships with prominent local companies and built the basis for a
multifaceted approach in the future.

vi) Enhancement of project management capabilities

We will continue to strengthen our project management capabilities for
the implementation and promotion of projects and businesses.

(b) Creating businesses for the next generation

Aiming to create businesses that will support our earnings base for the
next generation, we have built a company-wide framework to enhance
business innovation. Centered on the Business Innovation Committee, a
committee located under the Corporate Management Committee, we are
implementing plans to strengthen our ability to formulate new projects,
such as building relationships with universities and research
institutions inside and outside of Japan so as to enhance our
information-gathering ability. as well as introducing the idea of
“business innovation projects,” which use criteria for evaluating next
generation projects that are different from those applied to ordinary
investments.

We are also placing an emphasis on participating in domestic businesses
that would contribute to stimulating the local economy. Progress has
been seen in projects such as those one related to the seafood
processing zone in Kesennuma, an aquarium in Sendai, the Softbank
Tottori-Yonago Solar Park and the mega solar power facility project in
Higashimatsushima-city of Miyagi prefecture, all in Japan, which are
expected to contribute to revitalization of local economies.

(c) Evolution of portfolio strategy

Working primarily through the Portfolio Management Committee, we are
improving asset quality and implementing strategic recycling of
investments we have made, and are executing dynamic allocation of
management resources.

Continuous effort is being invested in human resources management, such
as recruitment of personnel who match the demands and strengthening of
nurturing program for project managers.

(d) Acceleration of globalization initiatives

By strengthening the ties with prominent local companies in countries
and regions where we conduct business, we succeeded in participating in
projects, such as Yulin Business Park project in Chongqing, China, where
we are to promote inward investment and participate in the selection of
sites, and building development project within a business park in
Singapore in collaboration with Ascendas Ptd Ltd.

The Nay Pyi Taw office in Myanmar being an example, we are establishing
offices and business organizations in our key strategic countries
including the BRICs, Mexico, Indonesia, Mozambique and Myanmar, as well
as in frontier regions such as Africa, thereby raising our presence in
the region and creating new projects.

As for globalization of human resources, we have expanded recruitment
into the international market and are continuously implementing human
resources training programs.

(e) Reinforcement of group management infrastructure

To further strengthen the business and corporate structure and to
maximize our business engineering capabilities for the realization of
our vision for the future as set forth in our current Medium-term
Management Plan, starting April 1, 2013, we are reorganizing our
business units and corporate staff divisions.

We will continue to develop our own CSR initiatives bearing in mind
“Yoi-Shigoto (good quality work),” as well as enhance and strengthen
communication with the community.

2) Progress with the Investment and Loan Plan

Our progress with the investment plan in each of the six business areas
in this fiscal year is as follows:

[Diagram omitted]

During this fiscal year, the first year of the Medium-term Management
Plan, we executed new investments and loans of approximately ¥960
billion, which was above the original plan of ¥ 800 billion. In August
2012, we agreed to jointly acquire 29.5% of the shares in Anglo America
Sur S.A. with Codelco and executed a combined investment and loan of
US$3 billion (¥232.6 billion). Since this transaction was not included
in our original annual investments and loans plan for this fiscal year,
the amount of investments and loans for the Metals business area
significantly exceeded the plan.

On the other hand, we collected approximately ¥220 billion through
disposal of assets and investments, which surpassed the original plan of
¥160 billion.

Sakhalin II capital redemption, sale of listed stocks, and collection of
loans in Machinery & Infrastructure business area contributed to contain
the increases of our net cash outflow to ¥100 billion above the original
plan.

While our free cash flow for the year ended March 31, 2013 was negative,
we will maintain our efforts to improve our portfolio by further
reinforcing our investment discipline and enhancing recycling of assets.
Due to the cash outflow for the above-mentioned large-scale investment
as well as a change in accounting method regarding certain physical
commodity swap transactions related to precious metals, net DER rose to
0.89 times as of March 31, 2013, against our original outlook of below
0.8 times during the current Medium-term Management Plan. Since our plan
for the next year is above our original assumption in the Medium-term
Management, we forecast the net DER to rise somewhat further.

(2) Business Plan for the Year Ending March 31,
2014

1) Forecasts for the year ending March 31, 2014

[Table omitted]

We assume foreign exchange rates for the year ending March 31, 2014 will
be ¥95/US$, ¥95/AU$ and ¥45/BRL, while average foreign exchange rates
for the year ended March 31, 2013 were ¥83.32/US$, ¥85.89/AU$ and
¥41.27/BRL. Our assumption for the annual average crude oil price
applicable to our financial results for the year ending March 31, 2014
is US$106/barrel, down US$8 from US$114/barrel applied for the year
ended March 31, 2013, based on the assumption that the crude oil price
(JCC) will be maintained at US$103/barrel throughout the year ending
March 31, 2014.

Gross profit is expected to be ¥900.0 billion. Despite the assumption
that prices of mineral resources and energy such as oil, iron ore and
coal will decline, we expect an increase in sales volume, as well as a
positive effect from depreciation of the Japanese yen and a recovery of
economic conditions in other business areas. Dividend income is expected
to be ¥90.0 billion due to an increase in dividend income from LNG
projects. We anticipate a rebound effect from impairment losses recorded
in the year ended March 31, 2013, in gains on sales of securities,
property and equipment and other gains-net. Equity in earnings of
associated companies is expected to be ¥200.0 billion reflecting the
reversal effect of impairment losses and contribution starting from
equity method investees in which we invested by the year ended March 31,
2013. As a result, net income attributable to Mitsui & Co., Ltd. for the
year ending March 31, 2014 is expected to be ¥370.0 billion.

The forecast for annual operating results by operating segment compared
to the results for the year ended March 31, 2013 is described as follows:

(Billions of yen)

Year ending

March 31, 2014

Year ended

March 31, 2013

Change

Iron & Steel Products

13.0

(2.9)

15.9

Mineral & Metal Resources

107.0

90.5

16.5

Machinery & Infrastructure

22.0

16.9

5.1

Chemicals

12.0

(1.5)

13.5

Energy

160.0

164.8

(4.8)

Lifestyle

16.0

13.0

3.0

Innovation & Corporate Development

(3.0)

4.7

(7.7)

Americas

17.0

12.4

4.6

Europe, the Middle East and Africa

3.0

(0.9)

3.9

Asia Pacific

33.0

27.5

5.5

All Other/Adjustments and Eliminations

(10.0)

(16.6)

6.6

Consolidated total

370.0

307.9

62.1

Effective April 1, 2013, the Innovation & Cross Function Segment, where
IT, FT and LT capabilities of our company are concentrated, changed its
name to Innovation & Corporate Development Segment. Logistics
infrastructure businesses, including development and management of ports
and airport terminal, advanced materials related businesses such as
liquid-crystal and electronic devices, and media related businesses such
as TV Shopping and broadcasting, all included in the Innovation & Cross
Function Segment until March 31, 2013, were transferred to Machinery &
Infrastructure Segment, Chemicals Segment, and Lifestyle Segment,
respectively.

The Innovation & Corporate Development Segment, through its integrated
IT, FT and LT capabilities, aims to solidify a business base for the
business fields included in the scope of this segment, contribute in
connecting the various segments within the company, and provide
functions that will contribute in creating next-generation businesses.

In accordance with the aforementioned change, the operating segment
information for the year ended March 31, 2013 has been restated to
conform to the operating segment as of April 1, 2013.

Projected net income attributable to Mitsui & Co., Ltd. from the Iron
& Steel Products Segment for the year ending March 31, 2014 is ¥13.0
billion, an increase of ¥15.9 billion from the year ended March 31,
2013. We expect an increase in profit attributable to the recovery in
market conditions and a profit contribution from the automotive
components manufacturing business in the Americas, in addition to the
reversal effect of foreign exchange losses recorded in the year ended
March 31, 2013.

Projected net income attributable to Mitsui & Co., Ltd. from the
Mineral & Metal Resources Segment is ¥107.0 billion, an increase of
¥16.5 billion from the year ended March 31, 2013. The primary reasons
for the increase are the positive effect from depreciation of the
Japanese yen; an increase in sales volume of iron ore and copper
reflecting expansion investments in iron ore projects; and an increase
in income from infrastructure expansion investments, including port
facilities. On the other hand, we took into consideration the negative
impact of a decline in prices of mineral resources.

Projected net income attributable to Mitsui & Co., Ltd. from the
Machinery & Infrastructure Segment is ¥22.0 billion, an increase of
¥5.1 billion from the year ended March 31, 2013. While the research
and development costs for development of a new aircraft engine is
expected to increase, we also expect positive effect from depreciation
of the Japanese yen and profit contribution from new projects in the
FPSO leasing business and IPP business.

Projected net income attributable to Mitsui & Co., Ltd. from the
Chemicals Segment is ¥12.0 billion, an increase of ¥13.5 billion from
the year ended March 31, 2013. In addition to the recovery in
underperforming trading activities, such as in petrochemical
materials, we anticipated a reversal effect of impairment losses on
securities recorded in the year ended March 31, 2013.

Projected net income attributable to Mitsui & Co., Ltd. from the
Energy Segment is ¥160.0 billion, a decline of ¥4.8 billion from the
year ended March 31, 2013. Expected positive factors include the
positive effect from depreciation of the Japanese yen; an increase in
dividends received from LNG projects; and an increase in sales volume
of oil & gas and coal. Meanwhile, negative factors are also expected
including an increase in depreciation cost in oil & gas producing
activities; a decline in oil and coal prices; and the reversal effect
of the gain posted in the year ended March 31, 2013 from the reversal
of deferred tax liabilities at Mitsui Oil Exploration Co., Ltd.

Projected net income attributable to Mitsui & Co., Ltd. from the
Lifestyle Segment is ¥16.0 billion, an increase of ¥3.0 billion from
the year ended March 31, 2013, reflecting the recovery in Multigrain
AG, despite the reversal effect of gains on sales of securities
recorded in the year ended March 31, 2013.

Projected net loss attributable to Mitsui & Co., Ltd. from the
Innovation & Corporate Development Segment is ¥3.0 billion, a decline
of ¥7.7 billion from the year ended March 31, 2013, mainly
attributable to the reversal effect of gains on sales of securities
including those in Nihon Unisys, Ltd. and LME Holdings Limited
recorded in the year ended March 31, 2013.

Projected net income attributable to Mitsui & Co., Ltd. from the
Americas Segment is ¥17.0 billion, an increase of ¥4.6 billion from
the year ended March 31, 2013, reflecting the positive effect from
depreciation of the Japanese yen; an expansion of the chemical tank
business; and contribution from Cinco Pipe & Supply, LLC. Projected
net income attributable to Mitsui & Co., Ltd. from the Europe, the
Middle East and Africa Segment is ¥3.0 billion, an increase of ¥3.9
billion from the year ended March 31, 2013, reflecting the recovery in
business conditions in these regions. Projected net income
attributable to Mitsui & Co., Ltd. from the Asia Pacific Segment is
¥33.0 billion, an increase of ¥5.5 billion from the year ended March
31, 2013, due to increases in this segment’s portion of net incomes of
subsidiaries of the Mineral & Metal Resources and Energy segments.

2) Key commodity prices and other parameters for the year ending March
31, 2014

The table below shows assumptions for key commodity prices and other
parameters for the projected net income attributable to Mitsui & Co.,
Ltd. for the year ending March 31, 2014. Effects of price movements for
each commodity on annual net income attributable to Mitsui & Co., Ltd.
are included in the table.

Year ended March 31, 2013

Result

Impact on Net Income attributable to Mitsui & Co., Ltd.

for the Year ending March 31, 2014

Year ending March 31, 2014

Assumption

114

Commodity

Crude Oil/JCC

¥1.9 bn (US$1/bbl)

103

114

Consolidated Oil Price(*1)

106

129(*2)

Iron Ore

¥2.2 bn (US$1/ton)

(*3)

7,950(*4)

Copper

¥0.6 bn (US$100/ton)

7,500

83.32

Forex (*5)

USD

¥1.9 bn (¥1/USD)

95

85.89

AUD

¥1.9 bn (¥1/AUD)

95

41.27

BRL

¥0.4 bn (¥1/BRL)

45

(*1) the oil price trend is reflected in net income with a 0-6 month
time lag. We assume the annual average price applicable to our financial
results as the Consolidated Oil Price based on the estimation: 4-6 month
time lag, 34%; 1-3 month time lag, 47%; no time lag, 19%.

(*2) Average of representative reference prices (Fine, 62% Fe CFR North
China) during April 2012 to March 2013

(*3) We refrain from disclosing the iron ore price assumptions.

(*4) Average of LME cash settlement price during January 2012 to
December 2012

(*5) Impact of currency fluctuation on net income of overseas
subsidiaries and associated companies (denomination in functional
currency) against the Japanese yen

The total sums for net incomes attributable to Mitsui & Co., Ltd. for
the years ended March 31, 2012 and 2013 reported by overseas
subsidiaries and associated companies were ¥473.5 billion and ¥350.9
billion, respectively. These companies principally use the U.S. dollar,
the Australian dollar and the Brazilian real as functional currencies in
their reporting.

We conducted a simplified estimation for the effect of foreign currency
exchange fluctuations on net income attributable to Mitsui & Co., Ltd.
for the year ending March 2014.

a) We aggregated a total projected net income attributable to Mitsui &
Co., Ltd. in the business plans of these companies covering the year
ending March 31, 2013, according to their functional currencies.
Firstly, we aggregated Australian dollar and Brazilian real denominated
projected net income attributable to Mitsui & Co., Ltd. of those
companies using two currencies as functional currencies. Secondly we
aggregate the rest of the projected net income attributable to Mitsui &
Co., Ltd. from overseas subsidiaries and associated companies as a US
dollar-equivalent amount. We conducted a sensitivity analysis on foreign
currency fluctuation for three categories of aggregated net income
attributable to Mitsui & Co., Ltd.

For example; yen appreciation of ¥1 against US$1 would have the net
effect of reducing net income attributable to Mitsui & Co., Ltd. by
approximately ¥1.9 billion. Specifically, for the net income
attributable to Mitsui & Co., Ltd. from those companies using Australian
dollar and Brazilian real as functional currencies, appreciation of ¥1
against Australian AU$1 and BRL$1 would have the net effect of reducing
net income attributable to Mitsui & Co., Ltd. by approximately ¥1.9
billion and ¥0.4 billion, respectively.

b) Net income attributable to Mitsui & Co., Ltd. from those mineral
resources and energy producing companies are affected by the currency
fluctuation between U.S. dollar as a contractual currency of sales
contracts and the two currencies as functional currency, affecting their
Australian dollar or Brazilian real denominated revenues. Attention
should be paid to this, in addition to the impact that is discussed in
a) above.

c) Furthermore, some subsidiaries and associated companies, including
the mineral resources and energy related production companies, carry out
hedging on the exchange rates between their functional currencies and
the U.S. dollar, which is the contract currency for sales contracts.
There are also cases that they carry out exchange rate hedging for yen
equivalence valuation of net income attributable to Mitsui & Co., Ltd.
that is denominated in foreign currencies. It is necessary to take the
impact of these factors into consideration separately from the
sensitivity resulting from the yen equivalence valuation of net income
attributable to Mitsui & Co., Ltd. in each of the three currencies
mentioned in a) above.

3) Investment and loan plan for the year ending March 31, 2014

During the year ending March 31, 2014, we plan ¥1trillion expenditure
for investments and loans in total. The Medium-term Management Plan has
a provisional budget of ¥600 billion allocated for the year ending March
31, 2014. However, since we continue to see many good investment
opportunities to strengthen our earning base, including high quality
upstream assets and infrastructure projects in emerging countries, we
have decided to increase the investment budget by ¥400 billion.

The ¥1 trillion investment plan consists of investments in the Metals
business area for ¥280 billion, mainly to investments in expansion
projects and on-going projects for iron ore, in the Machinery &
Infrastructure business area for ¥280 billion, in the Chemicals business
area for ¥40 billion, in the Energy business area for ¥320 billion
mainly to invest into the onshore oil field interest in Italy and shale
gas and oil related projects in North America, in the Lifestyle business
area for ¥50 billion, and in the Innovation & Corporate Development area
for ¥30 billion.

As a result, net cash to be used in investing activities is expected to
be ¥830 billion, and, while cash flow from operating activities is
expected to be positive, free cash flow is forecasted to be negative. We
would like to reinforce strategic divestitures as well as investments
and loans that will strengthen our earning base, keeping in mind the
necessity to recover from negative free cash flow.

[Diagram omitted]

(3) Shareholder Return Policy

In order to increase corporate value and maximize shareholder value, we
have sought to maintain an optimal balance between (a) meeting
investment demand in areas that are our core strengths and growth
largely through re-investments of our retained earnings, and (b)
directly providing returns to shareholders by paying out cash dividends
based on a target dividend payout ratio of consolidated net income.

For the two-year period of the Medium-term Management Plan to March
2014, while we principally aim for a steady increase in dividends
through improvements in corporate performance, we will also consider
more flexible compensation to the shareholders, provided that sufficient
retained earnings for future business development is secured.
Considering the strengthening of our financial standings that has been
accomplished through the execution of our previous Medium-term
Management Plan, we have set our minimum target dividend payout ratio at
25%.

As we have announced on November 2, 2012, for the year ended March 31,
2013, we plan to pay an annual dividend of ¥43 per share, a ¥12 per
share decrease from the corresponding previous year.

Pursuant to our policy, for the year ending March 31, 2014, we currently
envisage an annual dividend of ¥51 per share, an ¥8 increase from the
year ended March 31, 2013, on the assumption that our annual
consolidated net income attributable to Mitsui & Co., Ltd. will be ¥370
billion, as mentioned in our forecast net income for the year ending
March 31, 2014.

We will continue to review the shareholder return policy taking into
consideration the business environment, future investing activity
trends, free cash flow and interest-bearing debt levels, and return on
equity.

--

3. Other Information

Notice:

This earnings report contains forward-looking statements about Mitsui
and its consolidated subsidiaries. These forward-looking statements are
based on Mitsui’s current assumptions, expectations and beliefs in light
of the information currently available to it and involve known and
unknown risks, uncertainties and other factors, including, but not
limited to, the outcome of other events in the Gulf of Mexico relating
to the oil spill incident that occurred in the exploration block of Gulf
of Mexico, in which a subsidiary of Mitsui held certain working interest
(Incident). Such risks, uncertainties and other factors may cause
Mitsui’s actual consolidated financial position, consolidated operating
results or consolidated cash flows to be materially different from any
future consolidated financial position, consolidated operating results
or consolidated cash flows expressed or implied by these forward-looking
statements. These risks, uncertainties and other factors include, among
others, the risk of BP Exploration and Production Inc. and BP
Corporation North America Inc. (collectively, BP Parties) failing to
make payment for claims concerning the Incident that are to be paid by
the BP Parties under the terms of the settlement entered into between
MOEX Offshore 2007 LLC (MOEX Offshore), MOEX USA Corporation and Mitsui
Oil Exploration Co., Ltd. (collectively, MOEX Parties) and the BP
Parties, the risk of additional or amended legal proceedings being
brought against MOEX Offshore and its affiliates by governmental
entities or private parties seeking fines, penalties or sanctions
(collectively, Penalties), punitive damages, injunctive relief and other
remedies, and the imposition on the MOEX Parties and their affiliates in
pending or new lawsuits of Penalties, punitive damages, injunctive
relief or other remedies. We note, however, that to date, no Penalties,
punitive damages or injunctive relief have been imposed on MOEX Offshore
in connection with the Incident.

These risks, uncertainties and other factors also involve the other
factors contained in Mitsui’s Annual Securities Report and Quarterly
Securities Reports or in its other public filings, press releases or
website disclosures, and Mitsui undertakes no obligation to publicly
update or revise any forward-looking statements. As a result, given
these factors and the magnitude of the Incident, any such liability
could have a material adverse effect on Mitsui’s consolidated financial
position, consolidated operating results or consolidated cash flows.

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of Yen)

Assets

March 31,

2012

March 31,

2013

Current Assets:

Cash and cash equivalents

¥ 1,431,112

¥ 1,425,174

Time deposits

4,130

4,740

Marketable securities

1,087

367

Trade receivables:

Notes and loans, less unearned interest

322,585

291,052

Accounts

1,616,191

1,608,915

Associated companies

116,885

138,588

Allowance for doubtful receivables

(17,860)

(16,463)

Inventories

515,758

746,584

Advance payments to suppliers

129,987

135,120

Deferred tax assets―current

37,513

15,644

Derivative assets

53,664

61,081

Other current assets

215,271

220,729

Total current assets

4,426,323

4,631,531

Investments and Non-current Receivables:

Investments in and advances to associated

companies

1,709,082

2,325,255

Other investments

792,492

816,343

Non-current receivables, less unearned interest

454,191

523,904

Allowance for doubtful receivables

(36,840)

(37,362)

Property leased to others―at cost, less accumulated depreciation

272,746

330,627

Total investments and non-current receivables

3,191,671

3,958,767

Property and Equipment―at Cost:

Land, land improvements and timberlands

202,834

218,801

Buildings, including leasehold improvements

401,451

442,255

Equipment and fixtures

1,306,754

1,668,246

Mineral rights

158,967

203,142

Vessels

42,539

42,478

Projects in progress

152,789

235,084

Total

2,265,334

2,810,006

Accumulated depreciation

(1,009,451)

(1,239,736)

Net property and equipment

1,255,883

1,570,270

Intangible Assets, less Accumulated Amortization

110,307

118,448

Deferred Tax Assets―Non-current

15,626

31,538

Other Assets

12,013

14,027

Total

¥ 9,011,823

¥ 10,324,581

(Millions of Yen)

Liabilities and Equity

March 31,

2012

March 31,

2013

Current Liabilities:

Short-term debt

¥ 307,132

¥ 663,129

Current maturities of long-term debt

372,657

421,211

Trade payables:

Notes and acceptances

53,308

46,057

Accounts

1,342,343

1,438,287

Associated companies

110,289

71,272

Accrued expenses:

Income taxes

73,111

54,091

Interest

16,619

16,985

Other

93,266

80,971

Advances from customers

106,787

98,470

Derivative liabilities

65,262

83,940

Other current liabilities

83,256

70,917

Total current liabilities

2,624,030

3,045,330

Long-term Debt, less Current Maturities

2,898,218

3,184,957

Accrued Pension Costs and Liability for Severance

Indemnities

55,799

68,312

Deferred Tax Liabilities―Non-current

283,614

266,544

Other Long-Term Liabilities

289,352

319,334

Equity:

Common stock

341,482

341,482

Capital surplus

430,491

429,828

Retained earnings:

Appropriated for legal reserve

65,500

69,653

Unappropriated

2,192,494

2,405,008

Accumulated other comprehensive income (loss):

Unrealized holding gains and losses on

available-for-sale securities

90,476

135,832

Foreign currency translation adjustments

(380,457)

(94,912)

Defined benefit pension plans

(68,163)

(74,124)

Net unrealized gains and losses on derivatives

(24,302)

(24,974)

Total accumulated other comprehensive loss

(382,446)

(58,178)

Treasury stock, at cost

(6,203)

(5,974)

Total Mitsui & Co., Ltd. shareholders' equity

2,641,318

3,181,819

Noncontrolling interests

219,492

258,285

Total equity

2,860,810

3,440,104

Total

¥ 9,011,823

¥ 10,324,581

(2) Statements of Consolidated Income and Comprehensive Income

Statements of Consolidated Income

(Millions of Yen)

Year ended

March 31, 2012

Year ended

March 31, 2013

Revenues:

Sales of products

¥ 4,753,167

¥ 4,408,144

Sales of services

377,033

392,088

Other sales

121,402

111,377

Total revenues

5,251,602

4,911,609

Total Trading Transactions:

Year ended March 31, 2012, ¥ 10,481,166 million

Year ended March 31, 2013, ¥ 10,049,637 million

Cost of Revenues:

Cost of products sold

(4,166,337)

(3,901,272)

Cost of services sold

(147,561)

(161,858)

Cost of other sales

(59,425)

(58,040)

Total cost of revenues

(4,373,323)

(4,121,170)

Gross Profit

878,279

790,439

Other Expenses (Income):

Selling, general and administrative

514,798

521,075

Provision for doubtful receivables

15,097

14,761

Interest expense - net

5,440

1,186

Dividend income

(86,461)

(80,057)

Gain on sales of securities - net

(21,937)

(44,905)

Loss on write-down of securities

33,481

27,278

Gain on disposal or sales of property and equipment - net

(5,697)

(6,207)

Impairment loss of long-lived assets

14,049

12,342

Impairment loss of goodwill

4,209

-

Other (income) expenses - net

(7,911)

30,868

Total other expenses (income)

465,068

476,341

Income before Income Taxes and Equity in Earnings

413,211

314,098

Income Taxes:

Current

186,815

182,327

Deferred

(14,193)

(23,978)

Total income taxes

172,622

158,349

Income before Equity in Earnings

240,589

155,749

Equity in Earnings of Associated Companies - Net

232,090

176,226

Net Income before Attribution of Noncontrolling Interests

472,679

331,975

Net Income Attributable to Noncontrolling Interests

(38,182)

(24,049)

Net Income Attributable to Mitsui & Co., Ltd.

¥ 434,497

¥ 307,926

Statements of Consolidated Comprehensive Income

(Millions of Yen)

Year ended

March 31, 2012

Year ended

March 31, 2013

Net Income before Attribution of Noncontrolling Interests

¥ 472,679

¥ 331,975

Other Comprehensive Income (Loss) (after income tax effect):

Unrealized holding (losses) gains on available-for-sale securities

(9,897)

40,871

Foreign currency translation adjustments

(37,127)

306,112

Defined benefit pension plans

(9,645)

(5,908)

Net unrealized losses on derivatives

(9,899)

(753)

Total Other Comprehensive (Loss) Income (after income tax effect)

(66,568)

340,322

Comprehensive Income before Attribution of Noncontrolling
Interests

406,111

672,297

Comprehensive Income Attributable to Noncontrolling Interests

(33,082)

(41,037)

Comprehensive Income Attributable to Mitsui & Co., Ltd.

¥ 373,029

¥ 631,260

Notes:

1.The Statements of Consolidated Income above are not reviewed by
the auditors.

2.The Statements of Consolidated Income above have been adjusted
due to the adoption of ASC 810-10-65.

3."Net Income attributable to Noncontrolling Interests" and
"Comprehensive Loss (Income) attributable to

Noncontrolling Interests" show the amounts deducted to calculate
"Net Income attributable to Mitsui & Co.,

Equity transactions with noncontrolling interest shareholders and
other

14,476

11,607

Balance at end of year

¥

2,860,810

¥

3,440,104

(4) Statements of Consolidated Cash Flows

(Millions of Yen)

Year endedMarch 31, 2012

Year endedMarch 31, 2013

Operating Activities:

Net income before attribution of noncontrolling interests

¥ 472,679

¥ 331,975

Adjustments to reconcile net income before attribution of
noncontrolling interests to net cash provided by operating
activities:

Depreciation and amortization

153,475

198,852

Pension and severance costs, less payments

9,243

9,366

Provision for doubtful receivables

15,097

14,761

Gain on sales of securities - net

(21,937)

(44,905)

Loss on write-down of securities

33,481

27,278

Gain on disposal or sales of property and equipment - net

(5,697)

(6,207)

Impairment loss of long-lived assets

14,049

12,342

Impairment loss of goodwill

4,209

-

Deferred income taxes

(14,193)

(23,978)

Equity in earnings of associated companies, less dividends received

(72,804)

(60,492)

Changes in operating assets and liabilities:

(Increase) decrease in trade receivables

(134,283)

62,484

(Increase) decrease in inventories

(33,045)

106,338

Increase in trade payables

39,397

11,331

Payment for the settlement of the oil spill incident in the Gulf of
Mexico

(86,105)

-

Other - net

7,418

(177,715)

Net cash provided by operating activities

380,984

461,430

Investing Activities:

Net decrease (increase) in time deposits

253

(382)

Net increase in investments in and advances to associated companies

(98,896)

(230,592)

Net decrease in other investments

2,718

9,155

Net increase in long-term loan receivables

(1,402)

(132,560)

Net increase in property leased to others and property and equipment

(340,864)

(398,918)

Net cash used in investing activities

(438,191)

(753,297)

Financing Activities:

Net increase in short-term debt

41,420

161,481

Net increase in long-term debt

118,940

150,516

Transactions with noncontrolling interest shareholders

(4,533)

921

Sales (purchases) of treasury stock - net

138

(13)

Payments of cash dividends

(98,571)

(91,270)

Net cash provided by financing activities

57,394

221,635

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(10,134)

64,294

Net Decrease in Cash and Cash Equivalents

(9,947)

(5,938)

Cash and Cash Equivalents at Beginning of Year

1,441,059

1,431,112

Cash and Cash Equivalents at End of Year

¥ 1,431,112

¥ 1,425,174

(5) Assumption for Going Concern : None

(6) Basis of Consolidated Financial Statements

Scope of Subsidiaries and Associated Companies

1.

Subsidiaries

1) Overseas

192

2) Japan

76

2.

Associated Companies

1) Overseas

104

2) Japan

38

A total of 312 subsidiaries and associated companies are excluded from
the above. These include the companies which are sub-consolidated or
accounted for under the equity method by other subsidiaries, other than
trading subsidiaries.

(7) Notes to Consolidated Finalcial Statements

1.Operating Segment Information

Year ended March 31, 2012 (from April 1, 2011 to March 31, 2012)

(As restated)

(Millions of Yen)

Iron & Steel Products

Mineral & Metal Resources

Machinery & Infrastructure

Chemicals

Energy

Lifestyle

Innovation & Cross Function

Revenues

189,338

567,718

312,589

789,283

1,730,010

775,143

171,649

Gross Profit

42,796

194,833

93,957

65,211

219,051

111,959

53,505

Operating Income (Loss)

9,637

173,141

(8,181)

10,271

173,533

10,602

(20,056)

Equity in Earnings (Losses) of Associated Companies -Net

4,006

131,178

37,985

6,736

53,928

9,282

(20,364)

Net Income (Loss) Attributable to Mitsui & Co., Ltd.

9,451

201,264

17,689

9,086

188,085

17,005

(32,177)

Total Assets at March 31, 2012

523,884

1,121,721

1,340,703

685,933

1,750,490

1,239,109

573,493

Americas

Europe,

the Middle East and Africa

Asia Pacific

Total

All Other

Adjustments

and Eliminations

Consolidated Total

Revenues

529,052

119,511

65,056

5,249,349

2,246

7

5,251,602

Gross Profit

75,616

18,151

11,685

886,764

684

(9,169)

878,279

Operating Income (Loss)

24,290

(712)

(4,159)

368,366

(5,245)

(14,737)

348,384

Equity in Earnings (Losses) of Associated Companies -Net

4,276

451

4,735

232,213

-

(123)

232,090

Net Income (Loss) Attributable to Mitsui & Co., Ltd.

16,389

1,232

49,221

477,245

2,196

(44,944)

434,497

Total Assets at March 31, 2012

428,391

106,076

275,758

8,045,558

2,923,772

(1,957,507)

9,011,823

Year ended March 31, 2013 (from April 1, 2012 to March 31, 2013)

(Millions of Yen)

Iron & Steel Products

Mineral & Metal Resources

Machinery & Infrastructure

Chemicals

Energy

Lifestyle

Innovation & Cross Function

Revenues

174,615

540,321

363,538

746,014

1,409,562

800,406

150,060

Gross Profit

40,564

158,749

104,259

69,102

190,743

106,006

41,351

Operating Income (Loss)

3,587

123,937

(8,295)

7,394

134,937

(5,505)

(32,855)

Equity in Earnings of Associated Companies -Net

3,114

42,865

31,957

6,635

56,725

8,334

18,015

Net Income (Loss) Attributable to Mitsui & Co., Ltd.

(2,943)

90,453

20,486

(1,256)

164,800

10,323

3,619

Total Assets at March 31, 2013

510,582

1,576,961

1,526,655

703,546

1,940,433

1,313,883

768,952

Americas

Europe,

the Middle East and Africa

Asia Pacific

Total

All Other

Adjustments

and Eliminations

Consolidated Total

Revenues

547,154

95,118

82,922

4,909,710

1,931

(32)

4,911,609

Gross Profit

66,009

15,646

10,513

802,942

934

(13,437)

790,439

Operating Income (Loss)

11,428

(3,673)

(5,936)

225,019

(4,524)

34,108

254,603

Equity in Earnings of Associated Companies -Net

3,473

398

4,936

176,452

-

(226)

176,226

Net Income (Loss) Attributable to Mitsui & Co., Ltd.

12,405

(949)

27,536

324,474

1,548

(18,096)

307,926

Total Assets at March 31, 2013

501,536

114,026

321,936

9,278,510

3,540,159

(2,494,088)

10,324,581

Notes:

1. “All Other” includes business activities which primarily
provide services, such as financing services and operations
services to external customers and/or to the companies and
associated companies. Total assets of “All Other” at March 31,
2012 and 2013 consisted primarily of cash and cash equivalents and
time deposits related to financing activities, and assets of
certain subsidiaries related to the above services.

2. Transfers between operating segments are made at cost plus a
markup.

3. Net Income (Loss) Attributable to Mitsui & Co., Ltd. of
“Adjustments and Eliminations” includes income and expense items
that are not allocated to specific reportable operating segments,
and eliminations of intersegment transactions.

4. During the year ended March 31, 2013, the companies changed the
headquarters’ cost allocation system from partial allocation to
full allocation to the operating segments in order to make
business judgments which reflect the current cost structure.

The effect of these changes was a decrease in the Operating Income
(Loss) and the Net Income (Loss) Attributable to Mitsui & Co.,
Ltd. for the year ended March 31, 2013 as follows:

(Millions of Yen)

Iron & Steel Products

Mineral & Metal Resources

Machinery & Infrastructure

Chemicals

Energy

Lifestyle

Innovation & Cross Function

Operating Income (Loss)

(1,977)

(10,851)

(7,429)

(4,629)

(10,251)

(7,516)

(3,989)

Net Income (Loss) Attributable to Mitsui & Co., Ltd.

(1,473)

(8,084)

(5,535)

(3,449)

(7,637)

(5,600)

(2,971)

5. During the year ended March 31, 2013, “Foods & Retail” Segment
and the Consumer Service Business Unit that were included in the
“Consumer Service & IT” Segment were aggregated into the
“Lifestyle” Segment for the purpose of strengthening initiatives
in our business geared towards consumer products and the service
market in Japan and the emerging economies’ consumers that are
expected to expand.

Additionally, the “Logistics & Financial Business” Segment and the
IT Business Unit that were included in the “Consumer Service & IT”
Segment were aggregated into the “Innovation & Cross Function”
Segment. This new segment provides the functions of financing,
logistics and IT & process development for the purpose of
reinforcing the entire companies’ earnings base. This segment will
also pursue the creation of new businesses with its sights set on
the next generation.

In accordance with these changes, the operating segment
information for the year ended March 31, 2012, has been restated
to conform to the current period presentation.

6. During the year ended March 31, 2013, “Machinery &
Infrastructure Project” Segment changed its name to “Machinery &
Infrastructure”.

7. Operating Income (Loss) reflects the companies' a) Gross
Profit, b) Selling, general and administrative expenses, and c)
Provision for doubtful receivables as presented in the Statements
of Consolidated Income.

2. Net Income Attributable to Mitsui & Co., Ltd. per share

The following shows basic net income attributable to Mitsui & Co.,
Ltd. per share for the years ended March 31, 2012 and 2013:

Year ended March 31, 2012 (from April 1, 2011 to March 31, 2012)

Net income

(numerator)

Shares

(denominator)

Per share amount

Millions of Yen

In Thousands

Yen

Basic Net Income Attributable to

Mitsui & Co., Ltd. per Share

434,497

1,824,889

238.10

Year ended March 31, 2013 (from April 1, 2012 to March 31, 2013)

Net income

(numerator)

Shares

(denominator)

Per share amount

Millions of Yen

In Thousands

Yen

Basic Net Income Attributable to

Mitsui & Co., Ltd. per Share

307,926

1,825,019

168.72

Note : Diluted net income attributable to Mitsui & Co., Ltd. per
share for the years ended March 31, 2012 and 2013 is

not disclosed as there are no dilutive potential shares.

3. Subsequent Events

There are no material subsequent events to be disclosed.

Notes to Leases, Related party transactions, Tax effect accounting,
Financial instruments, Securities, Derivative instruments, Pension
cost and severance indemnities, Business combinations, Asset
retirement obligations and others are omitted because there is less
necessity for disclosure in the Flash Report.